CH15 LO4/LO5

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8 Terms

1
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What do investors use EPS for?

to evaluate profitability of a company

2
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simple capital structure

if corp only has common stock outstanding, also can have preferred stock outstanding but no conversion

3
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complex capital structure

if corp only has any dilutive security outstanding

4
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EPS

(NI - preferred dividends)/weighted average common shares outstanding

5
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how does cumulative preferred stock affect EPS

always substracted even it dividend is undeclared

6
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how does noncumulative preferred stock affect EPS

only subtract if declared

7
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antidilutive securities

securities that upon conversion/exercise increase EPS

8
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EPS = _____ -_____-_____

basic eps - impact - impact of options, warrants, and other dilutive securities